ANI Integrated Services Ltd Management Discussions.

1. Global Economy

In 2021, global growth is expected to reach 6%, before slowing to 4.4 percent in 2022. The forecasts for 2021 and 2022 are more optimistic than those from the October 2020 WEO. The increased revision incorporates more government support in a few large economies, a vaccine- driven recovery expected in the second half of 2021, and sustained economic activity adaption to low mobility. The economic turmoil could have been far worse if it hadnt been for the swift and coordinated response from central banks and governments around the world, albeit this varied greatly across countries. The expansion of practically all central banks balance sheets, as well as complementary measures implemented by governments around the world, enabled easy access to finance and support for both private and public consumption.

In CY 2020, the global economy contracted by 3.3 percent, as COVID-induced lockdowns pushed all major economies save China into recession. The 4.7 percent loss in Advanced Economies (AE) was greater than the 2.2 percent drop in Emerging Markets (EM). Despite the sharp global decrease in CY 2020, global GDP fell less than expected, owing to exceptional monetary policy support from global central banks and government fiscal stimulus. By March 2021, global fiscal stimulus had reached US$18.6 trillion (23 percent of GDP), while global central bank monetary stimulus had reached US$16.6 trillion (21 percent of GDP). The global economy is anticipated to return in 2021, with the International Monetary Fund (IMF) forecasting 6% growth, thanks to US stimulus and vaccination optimism, which will lead to more economic opening. The United States and China are anticipated to accelerate the rebound, with the US growing at 6.4 percent in 2021 and China at 8.4 percent. Governments and central banks are anticipated to keep their policies supportive until the recovery is well underway. The strength of the recovery will be determined by vaccine availability.

2. Indian Economy

The Indian economy was put under similar strain, with a statewide lockdown beginning in late March 2020 bringing activity to a halt for the majority of April and May 2020. In FY 2020-21, the Indian GDP is expected to fall by 8%, marking the first year of contraction since 1980. Due to rigorous and early lockdowns to control the spread of COVID-19, Indias economic fall was more severe than that of other major economies. However, following a decrease of 24.4 percent and 7.3 percent in the first and second quarters of FY 2021, growth has begun to improve and was back in positive territory (+0.4 percent) in the third quarter of FY 2021. In the September-December quarter, India had a V-shaped rebound, with most consumption and industrial indicators returning to positive growth territory after being in the deep negative in the June quarter.

The Reserve Bank of Indias (RBI) supportive monetary policy and central government fiscal policy initiatives, together with the gradual reopening of economic activities from June 2020, have resulted in a sequential rebound in economic production. Indias real GDP increased by 0.4 percent year on year in the October-December 2020 quarter, following a steep drop in the first two quarters of FY 202021. The recovery, on the other hand, is largely focused on the formal economy.

On weakening domestic demand, decreasing oil prices, and strength in Indias services exports, the external sector showed resilience, turning a current account surplus for the first time since 2004. Strong FDI and stock FII flows propelled Indias currency reserves to an all-time high of US$580 billion by the end of FY 2020-21, compared to US$475 billion at the end of FY 2019-20.

Despite the epidemic, inflation increased over the year, owing mostly to food inflation and higher gasoline taxes. On the exchange rate front, the Indian currency has been

pretty well sustained following an early bout of depreciation in the beginning of the financial year, owing to healthy portfolio inflows and a stronger current account position. The vaccination drive, which began in the last quarter of FY 2020-21 in the main economies, including India, has given a much-needed boost to optimism for a prolonged rebound of global economic activity. Almost all major central banks have committed to maintain their accommodating monetary policies in order to support economic growth. Economic growth is predicted to rebound substantially in FY 2021-22, both globally and domestically, thanks to the base effect. Because of the business problems given by inflation and uncertain market conditions, a considerable emphasis would be placed on operating the firm in a dynamic manner and shifting operational priorities to suit changing market conditions.

3. Technical Staffing Solutions

The staffing solutions industry is closely correlated with GDP growth, the stronger the economy, the higher is the progress in the staffing market. However, there are other important grounds as well that creates a major impact on the industry. In the current era, across the world, businesses were undertaking many changes but this epidemic crisis now made it imperative for the companies to hasten the transformation for their survival and existence in the market. Disruption and uncertainty caused by a pandemic required businesses to serve new and unforeseen types of demand, new clients and global markets. From standpoint of workforce management, FY 2020 will be marked as the year of emergence of online staffing platforms. With supportive technologies and Business Continuity Plan framework, virtual, remote and distributed work models have become mainstream work environment. In extension to that we noted boost in leveraging technology and virtual modes for onboarding, induction and training of the workforce as well. Digital transformation strategies continue to take shape as automation pervades the industry. Talent companies globally is using Data analytics and Artificial Intelligence (AI) to facilitate recruitment which is bound to be a strong ally of staffing firms when it comes to addressing issues like unconscious bias, data crunching, and hiring the best fit. Hence, every technical staffing and recruitment organization needs to understand and explore the opportunities that digitization brings.

Outsourcing in India has grown to an extraordinary level and is poised to make a giant leap in future. According to Staffing Industry Analysts, the industry is projected to grow by 10% in CY 2020. As per Economic survey 2019-20, by integrating "Assemble in India for the world" into "Make in India", India can create 4 crore well-paid jobs by 2025 and 8 crores by 2030. According to Indian Staffing federation records, Indias flexible workforce growth is expected to accelerate at 22.7% between 2018-2021. Higher compounded annual growth rate for flexi-staffing spells good tidings on the related space. In Budget 2020 proposed by Indian Finance Minister, it was stated that by 2030 the working age population of India will be the largest in the world. The millennials - belonging to the age bracket of 18-35 years contribute to nearly half of countrys working population, efforts should be made to sufficiently equip these people with skills that enable them to become creators of future of India. Also reviving and increasing participation of Indian women at the workplace and ensuring safety is equally crucial for the for the growth of our economy. Providing job opportunities and ensuring continued jobs for all in a world of disruptive changes will be paramount for which skill development and re-skilling will be important. Further initiatives made in direction of planned infrastructure is expected to result in new job opportunities in construction as well as operation & maintenance of assets and facilities developed for which skill development will be a key requirement for successful implementation. Based on these analyses we do project Indias technical staffing sector to emerge and grow for fulfilling all industrial requirements.

4. Company Overview

The Company has over 30 years of experience in delivering industrial solutions to the organized sector. ANI is continuously adding value by providing technical staffing solutions, qualified engineers to various verticals like electrical-instrumentation services, erection & commissioning, operation & maintenance, instrument calibration, plant shutdown, equipment services & support for OEMs, airport maintenance etc. ANI is best reckoned among manpower outsourcing agencies supporting temporary staffing into diversified Industries like EPC companies, power plants, oil & gas, refineries, chemicals & petrochemicals, pharmaceuticals, cement, FMCG, breweries, fertilizers, hospitality, construction, infrastructure projects and F&B sectors, metals, airports etc. These services are highly effective and affordable.

As a value addition to the existing services they also provide Manpower Outsourcing Support for project management services, construction, supervision, electrical testing & commissioning and temporary staffing services to all kind of industries. These services are timely executed as per the varied demands of customers globally. Our clients appreciate our excellence in execution and our ability to integrate innovation as required.

It has leveraged its track record in India to successfully expand its operations internationally, and have provided a wide range of engineering services on various international projects, particularly in the UAE, Thailand and Saudi Arabia

to esteemed clients like, Larsen & Tourbo Limited, Tata Consulting Engineers Limited, Reliance Industries Limited, Nestle India Limited, Engineers India Limited, Mondelez India Foods Limited, GAIL (India) Limited, etc. ANIs inherent strength is Manpower supply into technical, skilled and unskilled staff with qualitative background.

ANI overall outsourcing remains on powerful momentum. Recruitment and replacement become easier with temporary staffing solutions. Flexi-outsourcing proves to be advantageous for both employees as well as employers, that ways companies have an option to recruit on a requirement basis, rather than on a permanent basis. Because of altering sector dynamics and increased penetration of flexi-outsourcing in India and overseas, ANI is at the cusp of experiencing greater development.

5. Service provider to various industrial requirements

One of the direct effects on businesses of an emerging business ecosystem has been on their requirements for talent. This has meant that in the years to come, the Indian technical staffing sector will have a greater role to play. It is essential that staffing agencies do a periodic gut check to understand client pre-requisites and accordingly draft out detailed Talent acquisition plan by working in collaboration of the company. ANI is best reckoned among Manpower Outsourcing agencies supporting temporary staffing into diversified Industries. Our trained personnel work in direction to equip our clients with cost-effective staffing solutions that enhances productivity and efficiency as well maintaining compliance across skill sets.

6. Human Resource

Indian recruiting market has grown significantly. Indian businesses - domestic and multinational corporations have resorted to the idea of temporary hiring and have started outsourcing to numerous technical service providers or employee firms. Manpower is now providing business solutions to clients. Under the prevalent manpower model, servicing providing companies studies client business and then trains those on their payrolls in the same to work on software that their candidates will be required to work

with. Also, Contract-to-hire models are being utilized by larger brands to test the talent of the professionals before boarding them. Today, after China and the US, India has the worlds third largest contract manpower workforce. Service providing companies have the instruments, resources and connections they need to find the most suitable talent for an organization. Discovering high-skill talent can be very difficult within a brief period of time and within a defined budget, but manpower services firms can readily source such applicants from their current talent pool.

Our people have always been our most valued resource and their development is our prime focus. We enrich our employees knowledge and skills with continuous on the job in-house and external trainings and boost their morale & performance through employee engagement activities like Rewards and Recognition, Family Connect Program, Sports Activity & Town Hall meetings etc.

7. Research & Development

Technologies in the staffing world is growing at break neck speed, forcing component manufacturers to offer high level of technical skills. ANIs team continuously stay abreast with the latest developments & works to provide solutions for the new challenges. Our efforts in this direction has gained an unsurpassed reputation amongst our clients and helped us gain an extra edge over the competitors in this volatile market. Team has developed various processes for servicing its customers across the globe to meet enhanced requirements. These represent the cornerstones of our business and has led us open new avenues for business growth both in India and overseas markets.

8. Risk Management

In the current epidemic situation, the major risk pertains to probability of outbreak of COVID-19 within company premises as well as impacting employee safety and wellbeing, with that governments-imposed restrictions on physical movement of employees thereby might also impact business operations. Also considering the changing economic dynamics, it may not be easy to find the right resource for the job although there are many job market vacancies. This availability of the right resources becomes a company challenge unprecedented. The legislation on personal data security is becoming more restrictive as both the company and the client can be at stake without appropriate safeguarding of personal information. Violation of clients Intellectual Property rights or breaches of third- party confidential information agreements imposes serious concerns on companys credibility and business. New and complex regulations can expose businesses to a greater danger of non-compliance, resulting in potential allegations, fines, company suspension and reputational harm. Technological disturbance and associated Information and cyber security risks threatens to shift the traditional business model of recruitment andoutsourcing. The Companys day-to-day activities can also be affected by deviation from normal processes, absence of automation, input and invoice mistakes, etc. Geo political risks arising out of entering int contracts in a new country poses serious concerns on companys expansion goals. People are the companys most significant asset, and talent in a competitive industry is difficult to get through. Failure to attract, create and maintain the correct individuals or even make timely partnership payments could have an adverse effect on the activities of the company including its brand image.

Mitigation:

Inherent business risks are resolved keeping companys Risk Management Policy as base. The objective of which shall be identification, evaluation, monitoring and minimization of identifiable risks as well proactively manage uncertainty and changes in the internal and external environment to limit negative impacts and capitalize on opportunities. Framing, implementing and monitoring the risk management plan for the company falls under the purview of the management.

Further the company is focused to set the new industry standard for service delivery by adopting technology and digitalization. In this pandemic situation, we have opted towards virtual and remote work environment that has helped us to successfully meet our client deliverables as well maintain business continuity while simultaneously abiding by governments nationwide restrictions. In order to attain higher customer satisfaction and income development, local companies have the autonomy to react to changing market circumstances. Successful talent management enriches quality and strengthens loyalty of employees. Improved potential for data protection and compliance with appropriate legislation and regulations, reinforce applicants and customers confidence in the service level of the Company. Appropriate measures and feasibility checks are being taken to provide uninterrupted high-quality services to the clients at all geographies.

In addition, regular training and exposure decreases worker likelihood of being exposed to unfavorable working circumstances and increases awareness, workplace satisfaction and reputation of individual and company as a trusted partner. Enhanced safety capacities protect the information assets of the Company, including candidate data, and guarantee continuous service delivery to all customers. We have also strengthened our systems to strengthen personal data governance from controllers outlook as well. This improves the trust of customers in the business and team. Having large reputed corporates including public sector companies, and MNCs help in reducing the financial risk to the Company. Alongside initiatives are also made for early detection and redressal of any operational or financial risk arising to the company.